John Lewis relaunched its reward credit card with New Day last summer, however some customers have been experienced issues when trying to use their new cards online with some retailers and services.
The Partnership Credit Card was first launched in 2004, and allows you to earn points every time you shop at Waitrose and John Lewis. These points can then be exchanged for vouchers.
However, John Lewis and New Day have been hit with a string of complaints from existing customers trying to switch to the new deal.
Here, Which? explains what the John Lewis Partnership card offers, what issues new and existing customers are experiencing and how it compares with other reward cards on the market.
What does the new John Lewis Partnership card offer?
The John Lewis Partnership Credit Card is a collaboration with New Day and allows you to earn five points for every £4 spent at John Lewis or Waitrose, or one point for every £4 spent elsewhere.
For every 500 points you earn, you receive a £5 John Lewis or Waitrose voucher. According to John Lewis, £230m has been issued in customer vouchers over the past five years.
The card has no annual fee, and also offers interest-free spending for the first six months for new customers, with an APR of 21.9% (variable) based on an assumed credit limit of £1,200.
Existing customers who applied for the new card before 3 January 2023 will have an APR of 18.9% (variable), and will get six months interest-free on balance transfers (with a balance transfer fee of 1.99%).
John Lewis said the relaunch forms part of its wider plans to provide more financial products and services, and that it will be increasing the size of its John Lewis Finance team by a third.
New Day has previously teamed up with Amazon for its Amazon Classic and Platinum Credit Cards, however it was announced in March 2022 that this partnership would end in January 2023, with customers being transferred to New Day’s Pulse cashback credit card.
- Find out more: Amazon credit card closure explained
What does this mean for existing customers?
If you have the old version of the John Lewis Partnership Credit Card that has stopped working, you still need to keep making the minimum repayment each month until your balance reaches zero. Once it reaches zero the account will be closed.
You'll need to apply for the new credit card to continue to collect reward points and earn gift vouchers.
The process to apply for the new card for existing customers with a unique reference number has now closed, which means you'll need to apply for the card as a new customer, and you'll get the new rates.
John Lewis and New Day hit with string of complaints
John Lewis and New Day have faced fury from some existing card members who were rejected for a new card, while others experienced issues using their card online. Here is a summary of some of the complaints.
If you have an issue with your new John Lewis credit card get in touch at grace.witherden@which.co.uk.
Card flagged as 'foreign-issued debit card'
We’ve heard from several customers whose cards have been flagged by online retailers as ‘foreign-issued debit cards’, instead of credit cards.
Jay Wilkinson, who has had a Partnership card since it launched in 2004, first noticed she couldn’t use her new card when buying a new passport on the gov.uk website.
New Day told her that gov.uk had set the card up as a Mastercard debit card, and said it would work if she selected she was using a debit card.
John Lewis Finance confirmed to us that gov.uk (and the DVLA) held outdated information about the card, which has since been updated. But Jay says she is having issues with other websites, too. She told us: ‘I’m disappointed by John Lewis’s change of card provider, having used its HSBC-supported credit card for years.’
Due to the same issue, Tina Besant is unable to transfer the balance of her Partnership card to another credit card. She said: ‘I’m being held hostage by the Partnership card and having to pay interest on the balance. I could have used a 0% balance transfer with Virgin Money to pay off my bill sooner.’
Virgin Money confirmed to us that the bank identification number (BIN) for the Partnership card wasn’t recognised in its system and it's in the process of registering it.
New Day told us that the BIN assigned to the Partnership card by Mastercard was updated and successfully tested before launch, but there are a ‘handful of cases’ where the transactions are classified as being made by a debit card.
It said: ‘In most cases, the third-party companies who manage the retailer’s website were found to be incorrectly classifying the card, not the retailer itself. We are working closely with Mastercard, retailers and third parties to resolve issues.’
Existing customers rejected for new card
Some existing customers got in touch with us after they were rejected when they applied for the new card.
Bob Brittain and Rose-Ann Movsovic told us they'd had a John Lewis Partnership card since it was launched, and pay off their balance in full every month by direct debit.
After filling out the application form Bob, as the primary card holder, was told he was ineligible, which he suspects is due to the couple's present income.
He said: ‘This takes no account of people such as ourselves who are mortgage-free, have savings and investments and pension pots which we are choosing not to access at present.’
He has filed a complaint with New Day.
In response, New Day said as a regulated financial services provider, it must complete creditworthiness and affordability checks and consider a variety of information including payment history, data provided by customers and information held at credit reference agencies.
John Lewis urged customers to get in touch with the customer services team if they feel the information held on them is incorrect. A select group of customers have been invited to reapply by John Lewis. It also urged cardholders to review the information held on them by credit reference agencies to confirm the details are correct.
Existing customers have credit limits slashed
Meanwhile, others mentioned they had been accepted for the new credit card, but their credit limit had been cut. One user claimed his limit had gone from £25,000 to £1,500.
Others raised concerns about how people without a mobile phone or internet access could apply for a new card.
John Lewis said it is constantly reviewing feedback from customers and has already made some changes to the application form to make it clearer, which is leading to more customers being accepted.
It said: ‘We want all of our customers to have the option to have our new Partnership Credit Card and sincerely apologise to anyone who is having difficulty. Around 1% of customers have raised issues and we’re working incredibly hard with New Day to help them.’
New Day said 84% of its customers who had been approved have been offered the same, or a higher credit limit, and the average credit limit has increased by 16%.
The company added: ‘A small number of customers may initially receive lower limits that reflect changes in their financial circumstances since they first took out the Partnership card. Any lower limits will be assessed regularly to ensure any changes in financial circumstances are factored in.’
John Lewis told us it has increased the credit limit for a small percentage of customers where it now has information on their affordability.
Customers need a mobile number to apply
One Which? member got in touch with our money clinic last year (Which? Money, December edition) after she claimed she was told by a helpline adviser she would need a smartphone to be eligible for the card.
New Day said customers don’t need a smartphone with the ability to use apps to apply, but they do need a mobile phone that has the ability to receive text messages to keep your data safe.
This is because New Day requires customers to have a mobile phone to authenticate purchases and help to prevent fraud. This type of authentication, which sends a one-time passcode in a text to your phone to verify transactions, is widely used.
It said it explored alternative processes but believes using mobile phone authentication is the best way to protect customers from credit card fraud, help them manage their account and verify transactions and identity through one-time passcodes.
- Find out more: new fraud checks could catch out online shoppers
How does the John Lewis Partnership Credit Card compare?
Here is how the new Partnership card stacks up against other reward cards on the market, when it comes to what's on offer to new customers. All the cards we compared have no annual fee.
| Reward credit card | What it offers | How many points can you earn? | APR (representative variable) |
|---|---|---|---|
| Sainsbury's Nectar Credit Card | Interest-free spending for six months and 0% interest on balance transfers for up to six months (with a 3% balance transfer fee). | One point for every £2 you spend at Sainsbury's, Argos, Habitat and Tu Clothing. One point for every £5 spent elsewhere. 8,000 bonus points if you use the card to spend over £400 at eligible stores during the first two months of opening the account. | 20.95% |
| John Lewis Partnership Credit Card | Interest-free spending for six months. | Five points for every £4 spent in John Lewis or Waitrose online and in store. One point for every £4 spent elsewhere | 21.9% |
| Tesco All Round Credit Card | Interest-free spending for up to 12 months and 0% interest on balance transfers for up to 12 months (with a 1.99% balance transfer fee). You also get up to 12 months 0% interest on money transfers (with 3.99% fee). | Five Clubcard points for every £4 spent in Tesco. One Clubcard point for every £8 spent elsewhere. | 22.9% |
| M&S Shopping Plus Credit Card | Interest-free spending for up to 21 months and up to 18 months 0% on balance transfers (with a 2.99% balance transfer fee). | One point for every £1 you spend in M&S and one point for every £5 you spend elsewhere. | 23.9% |
Data correct as of 6 January 2023
All these cards have no annual fee and offer reward points, as well as a certain period of 0% interest spending.
Sainsbury's used to offer the most generous points, however it's shaken up its Nectar point rewards for credit card customers. As of 1 November, it offers one point for every £2 spent with the retailer instead of two.
John Lewis and Tesco both offer five points per £4 spent with them.
The best card for you will depend on where you shop the most. If you mainly shop at John Lewis or Waitrose, the Partnership card is a good choice. However, if you find yourself shopping more at Tesco, Sainsbury’s or Marks & Spencer, you may be better off applying for an alternative card.
If you want a card just for a balance transfer, 0% interest on spending, or a money transfer, you may be better off with another provider with longer interest-free periods.
- Find out more: best credit card deals
Is John Lewis a good provider?
Our credit card survey was carried out in May 2022, and applied to the former version of the card with HSBC, so these scores may not reflect what customers think of the relaunched version of the card.
Customers gave it a score of 75% - well above average - but the card didn’t meet the benchmarks set in our product analysis to secure Which? Recommended Provider status.
It scored well in several categories, including customer service, application process, clarity of statement, dealing with queries and complaints and the ability to manage the account online.
It didn't do as well on its charges for using the card abroad and the ability for customers to manage their account by telephone.
- Find out more: best and worst credit card providers
How to use a reward credit card
A reward credit card can be a great way to get rewarded for your spending.
To maximise rewards, put all your everyday spending on them. Just make sure you pay your bill in full every month - interest can be high and could wipe out any money you make in rewards.
If you will struggle to pay what you borrow in full every month, you may be better off considering a low-interest or interest-free credit card.
- Find out more: best low-interest credit cards
The article has been updated several times since it was first published. It was last updated on 6 January to include issues customers have faced using the card online.
source https://www.which.co.uk/news/article/john-lewis-relaunches-partnership-reward-credit-card-with-new-day-aQbat7m63fPV